Home equity is the portion of a home that a homeowner truly owns, calculated by subtracting any outstanding mortgage balance from the property's current market value. For example, if a home is worth $300,000 and the homeowner owes $200,000 on their mortgage, the home equity would be $100,000. This equity can increase over time as the home appreciates in value or as the homeowner pays down the mortgage. Home equity can be a valuable financial resource. Homeowners can tap into their equity through options like a home equity loan or a home equity line of credit (HELOC). These options allow homeowners to borrow against their equity for various purposes, such as home improvements, debt consolidation, or other expenses